fiiCICI PRlDENllAL1~,r LIFE INSURAN

September 11, 2019

General Manager Listing Department BSE Limited, Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai 400 001

Dear Sir/Madam,

Vice President Listing Department National Stock Exchange of India Limited 'Exchange Plaza', Bandra-Kurla Complex, Sandra (East), Mumbai 400 051

Subject: Investor presentation

Please note the updated investor presentation enclosed alongwith this letter.

Thanking you.

Yours sincerely,

For ICICI Prudential Life Insurance Company Limited

Vyoma Manek Company Secretary ACS 20384

Encl.: As above

ICICI Prudential Life Insurance Company Limited Unit No.1 A & 2A, Raheja Tipco Plaza, Rani Sati Marg, Malad (East), Mumbai- 400097

Phone: +91 22 4205 8000 • Fax: +91 22 4205 8222 Regd. Office : ICICI Prulife Towers, 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai- 400025. India. Visit us at www.iciciprulife.com

Phone: +91 22 5039 1600 • Fax: +91 22 2422 4484 • Email: corporate@iciciprulife.com CIN: L66010MH2000PLC127837

Performance update

September 11, 2019

• Company strategy and performance

• Opportunity

• Industry overview

Agenda

August 2019 update

Premium growth

4

` billion FY2019 Q1-FY2020 July 2019 August 2019 5M-FY2020

APE1

77.99 14.70 6.46 6.28 27.44

YoY growth 0.1% 5.3% 0.9% (7.8%) 1.0%

RWRP2

70.95 12.96 5.99 5.73 24.68

YoY growth (4.9%) 1.1% (1.3%) (10.1%) (2.3%)

1. Annualized premium equivalent

2. Retail weighted received premium

Components may not add up to the totals due to rounding off

• Company strategy and performance

• Opportunity

• Industry overview

Agenda

Key strategic elements

6

VNB Growth

Customer centricity

continues to be at the core

VNB Growth

Protection

Premium

Growth

Productivity

PersistencyVNB Growth

Aspiration to double FY2019 VNB in 3 - 4 years

VNB growth

7

` billion Q1-FY2019 FY2019 Q1-FY2020

Value of New Business (VNB)1

2.44 13.28 3.09

VNB margin 17.5% 17.0% 21.0%

1. For full year, based on actual cost; Q1: based on management forecast of full year cost

Strategic elements (1/4)

8

1. Annualized premium equivalent

Premium

growth

• Deepen penetration in under-served customer

segments

• Enhance current distribution

• Create new distribution

• Augment capability in Health and Protection

• Increase focus on Pension and Annuity

` billion FY2019 Q1-FY2020

APE1

77.99 14.70

YoY growth 0.1% 5.3%

Strategic elements (2/4)

9

Protection

focus

Continue to grow both retail and group lines of business

` billion FY2019 Q1-FY2020

Protection APE 7.22 2.14

YoY growth 61.9% 87.7%

Protection mix 9.3% 14.6%

Strategic elements (3/4)

10

Persistency Improve persistency across all cohorts

Persistency1

FY2019 2M-FY2020

13th

month 84.6% 84.4%

25th

month 75.6% 75.7%

37th

month 69.3% 69.8%

49th

month 63.8% 64.2%

61st

month 56.8% 57.3%

1. Retail excluding SP computed as per IRDAI circular dated January 23, 2014

Strategic elements (4/4)

11

ProductivityContinue to leverage technology for process re-

engineering and to drive productivity

` billion Q1-FY2019 FY2019 Q1-FY2020

Cost/TWRP1

17.5% 15.0% 17.0%

Cost/TWRP (savings

LOB)13.7% 11.5% 11.3%

1. Total cost including commission/(Total premium- 90% of single premium)

Key strategic elements

12

Customer centricity

continues to be at the coreVNB Growth

Protection

Premium

Growth

Productivity

PersistencyVNB Growth

4P: Premium

77.92 77.99

13.96 14.70

FY2018 FY2019 Q1-FY2019 Q1-FY2020

Premium growth

14

Retail constitutes more than 90% of new business

APE (` billion)

Premium

growth

• Deepen penetration in under-served customer

segments

• Enhance current distribution

• Create new distribution

• Augment capability in Health and Protection

• Increase focus on Pension and Annuity

Product segments

15

1. Protection includes retail and group protection products

Total may not add up due to rounding off

Premium

growth

• Deepen penetration in under-served customer

segments

• Enhance current distribution

• Create new distribution

• Augment capability in Health and Protection

• Increase focus on Pension and Annuity

APE (` billion) Mix

Segments Q1-FY2019 FY2019 Q1-FY2020 FY2019 Q1-FY2020

Savings 12.82 70.77 12.55 90.7% 85.4%

ULIP 11.14 62.10 10.46 79.6% 71.2%

Par 1.36 6.72 1.42 8.6% 9.7%

Annuity 0.12 0.69 0.20 0.9% 1.3%

Others 0.20 1.27 0.48 1.6% 3.2%

Protection1

1.14 7.22 2.14 9.3% 14.6%

Total APE 13.96 77.99 14.70 100.0% 100.0%

Annuity premium grew more than 70% in Q1-FY2020

Distribution channels

16

Premium

growth

• Deepen penetration in under-served customer

segments

• Enhance current distribution

• Create new distribution

• Augment capability in Health and Protection

• Increase focus on Pension and Annuity

APE (` billion) Mix

Channels Q1-FY2019 FY2019 Q1-FY2020 FY2019 Q1-FY2020

Bancassurance 7.76 43.53 7.70 55.8% 52.4%

Agency 3.04 16.89 3.11 21.7% 21.2%

Direct 1.64 9.34 1.88 12.0% 12.8%

Corporate agents

and brokers0.91 4.59 1.00 5.9% 6.8%

Group 0.61 3.65 1.00 4.7% 6.8%

Total APE 13.96 77.99 14.70 100.0% 100.0%

Total may not add up due to rounding off

4P: Protection

Protection growth

18

Protection growth continues to be robust

APE (` billion)

Protection

growth

• Continue to grow both retail and group lines

of business

4.46

7.22

1.14

2.14

FY2018 FY2019 Q1-FY2019 Q1-FY2020

4P: Persistency

Persistency (retail excluding single premium)

Month FY2019 2M-FY2020

13th

month 84.6% 84.4%

25th

month 75.6% 75.7%

37th

month 69.3% 69.8%

49th

month 63.8% 64.2%

61st

month 56.8% 57.3%

20

As per IRDAI circular dated January 23, 2014;

21

As per IRDA circular dated January 23, 2014

Month FY2019 2M-FY2020

13th

month 86.2% 86.1%

25th

month 77.4% 77.4%

37th

month 71.0% 71.7%

49th

month 65.0% 65.4%

61st

month 58.1% 58.7%

Persistency (retail including single premium)

4P: Productivity

Productivity: Cost efficiency

Q1-FY2019 FY2019 Q1-FY2020

Expense ratio (excl. commission)1

12.0% 9.5% 12.1%

Commission ratio2

5.5% 5.6% 4.9%

Cost/TWRP3

17.5% 15.0% 17.0%

Cost/Average AUM4

2.5% 2.8% 2.3%

Cost/TWRP (Savings LOB) 13.7% 11.5% 11.3%

23

1. Expense ratio: All insurance expenses (excl. commission)/(Total premium- 90% of single premium)

2. Commission ratio: Commission/(Total premium- 90% of single premium)

3. Cost/(Total premium- 90% of single premium)

4. Annualized cost/Average assets under management during the period

Total may not add up due to rounding off

• 67% of new business policies issued within 2 days

• 92% of new business applications initiated via digital platform

` billion

6.05

26.43

6.56

2.80

15.51

2.65

8.85

41.94

9.20

Q1-FY2019 FY2019 Q1-FY2020

Commission

Non-Commission

VNB growth levers update (4P’s)

` billion FY2019 Q1-FY2020 Growth

Premium growth (APE) 77.99 14.70 5.3%

Protection growth (APE) 7.22 2.14 87.7%

Persistency (13th

month)2

84.6% 84.4%

Persistency (49th

month)2

63.8% 64.2%

Productivity (Cost/TWRP: Savings)3

11.5% 11.3%

24

1. For full year, based on actual cost; Q1: based on management forecast of full year cost

2. Retail excluding SP computed as per IRDA circular dated January 23, 2014

3. Total Cost including commission / (Total premium – 90% of single premium)

Components may not add up to the totals due to rounding off

` billion Q1-FY2019 FY2019 Q1-FY2020

Value of New Business (VNB)1

2.44 13.28 3.09

VNB margin 17.5% 17.0% 21.0%

Financial update

Financial metrics

` billion Q1-FY2019 FY2019 Q1-FY2020 Growth

Retail new business premium 14.91 81.40 15.33 2.8%

Retail renewal premium 36.25 202.25 39.76 9.7%

Group premium 4.01 25.65 8.20 104.5%

Total premium 55.18 309.30 63.29 14.7%

Value of New Business (VNB)1

2.44 13.28 3.09

Profit after Tax 2.82 11.41 2.85

Solvency ratio235% 215% 217%

AUM1,426.63

31,604.10

21,640.24

3

26

1. For full year: based on actual cost; Q1: based on management forecast of full year cost

2. At March 31, 2019

3. At June 30 of respective years

Technology

Objectives

28

Strengthening the

coreBe future ready

Support new

growth engines

Digital evolution path to maturity

29

End to end digitalization of journeys Leverage ecosystems and tech advancements

Build digital foundation

Optimize processes

and systems

Digitize onboarding and service

Build seamless presentation

layer

1 2

Leverage ecosystem

Collaborate with internal stakeholders

And partners for enhancing

experience and productivity

Market leadership

IT as an enabler for

Business innovation

3 4

• Seamless AI, ML,

NLP interventions

in the journey

• Enhance

experience and

productivity

• Integrate internal,

Partner systems

and external

ecosystems

• Provide frictionless

journey

• Process re-

engineering

• Technology

architecture

• Service

architecture

• Process

automation

• Build seamless

presentation

layer

• Integration

architecture

AI : Artificial Intelligence| ML : Machine Learning

NLP : Natural Language Processing

2011-2013 2013-20152015-2018 2018-2019

Need AnalysisLead Management

System

Cognitive BOTsNudge Engines Learners Box

Customer Profiler

Product recommendation

based on customer’s life

stage, goal, risk appetite

Enhanced with voice

capability and geo

tagging

Know customer better

through social platforms

Prompt for appropriate

action

24x7 query resolution

using chat bots

On-the-go e-learning

modules and video based

sales pitches

Pre sales

30

Flexible

on-boarding

Paperless

on-boarding

Tele underwritingRobotic enabled

issuance

AI assisted

underwriting

Instant document

verification (OCR)

Platform agnostic and

available for all channels

End to end digital and

seamless onboarding

Real time identification

and verification of

documents

Robotic processing for

faster issuance

Improves efficiency and

reduces issuance TAT

Empowers underwriters

with comprehensive

insights

Onboarding and issuance

OCR : Optical Character Reader

AI : Artificial Intelligence31

Anytime..

..AnywherePremium payment

WhatsAppService bots (LiGo)Automated

Claims Processing

Intuitive IVR

76% transactions self

serviced, omni channel

experience

Over 60% renewal

premium through

electronic modes

50% navigation time

saved

92% good understanding

with 75% service

coverage

First life insurer to get

business verified account

AI based pre-claim

assessment & claim

processing

Customer servicing and claims

IVR : Interactive Voice Response

32

Rank high on

online searches

Segmented

targeting

Truecaller

integrationSelfie quote Co-browsing

Hyper

personalisation

Machine learning used to

rank us higher when

customers search

Reaching the customer by

mapping their interests

and affinities

Personalized messaging

to engage customers

throughout journey

AI backed quote based on

facial recognitionFacilitate auto form fill

Instant screen share

available for assistance in

form fill

Marketing and lead generation

33

Process

simplificationFlexible integration

Customer serviceEasy UI

Web portal

Superior customer

experience

Modular integration as

per the choice of partners

Self service module for

Group business

Pre-coded pages for

quicker integration

Enabling customer

service on partner portals

Partner integration

UI : User Interface

34

Actionable insights Data modelling

Data lake

solution

Google Big Query,

Hadoop, Python

Smart solutions

Accelerate sales, enhance

customer experience &

personalization

Customer interaction

based segmentation,

propensity, nudges

Pre approved life cover;

provide best offer to

customer

Using best technology

available to process the

data

Use of AI & ML to analyse

structured & unstructured

data

Analytics

AI : Artificial Intelligence

ML : Machine Learning35

Embedded Value

117.64

142.69

70.24

73.54

Mar-2018 Mar-2019

Value of inforce (VIF) Adjusted net worth (ANW)

Embedded Value (EV)1

37

1. As per Indian Embedded value (IEV) method

Components may not add up to the totals due to rounding off

` billion

Pre dividend EV growth of 19.6%

187.88

216.23

Analysis of movement in EV

38

1: EVOP is the embedded value operating profit net of tax

2: ROEV is the return on embedded value net of tax

EV results prepared as per APS 10 and reviewed by Milliman Advisors LLP

Components may not add up to the total due to rounding off

` billion

VIF

117.64

ANW

70.24

15.84 4.20

13.28 2.66 1.97 0.04 0.02 (1.22) (8.43)

IEV (Mar 31,

2018)

Unwind Operating

Assumption

Changes

VNB Persistency

variance

Mortality and

morbidity

variance

Expense

variance

Other variance Economic

Assumption

Change and

Investment

Variance

Net Capital

Injection

IEV (Mar 31,

2019)

VIF

142.69

ANW

73.54

187.88

216.23

EVOP1

= 38.01

ROEV2

= 20.2%

Analysis of movement in EV1

` billion FY2017 FY2018 FY2019

Opening EV 139.39 161.84 187.88

Unwind 12.21 13.72 15.84

Value of New Business (VNB) 6.66 12.86 13.28

Operating assumption changes 1.00 7.64 4.20

Persistency variance 0.99 1.53 2.66

Mortality and morbidity variance 0.98 0.78 1.97

Expense variance 0.35 0.27 0.04

Other variance 0.76 0.00 0.02

EVOP 22.95 36.80 38.01

Return on embedded value (ROEV) 16.5% 22.7% 20.2%

Economic assumption change and investment variance 5.82 1.13 (1.22)

Net capital injection (6.32) (11.88) (8.43)

Closing EV 161.84 187.88 216.23

39

1. As per Indian Embedded Value (IEV) method

• Company strategy and performance

• Opportunity

• Industry overview

Agenda

Favorable demography

41

1. Source: UN population division

2. Source: World bank

Large and growing population base1

Rising affluence2

Driving GDP growth 2

High share of working population1

51 58127 146

209 268 327

13531428

S K

orea

S A

fric

a

Jap

an

Ru

ssia

Brazil

In

do

nesia

US

A

In

dia

Ch

ina

2018 Population (mn)

-0.3% 0.0%0.1%

2.6%

4.4%

6.0%

7.3%

10.9%

Ru

ssia

Jap

an

Brazil

U.S

.A

So

uth

Ko

rea

In

do

nesia

In

dia

Ch

ina

GDP per capita CAGR

(FY2009-FY2019)

578

727

2015 2030

Population of age 25-59 years (in mn)

4.8%

9.8%

8.5%

6.6%

5.5%

6.4%

7.4%

8.2% 8.2%

7.2% 7.2%7.5% 7.5%

1.9%

4.2%

-1.7%

3.2%

2.5% 2.6%2.9% 2.8% 2.6%

3.1% 3.0%2.6% 2.7%

FY02 FY08 FY10 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20E FY21E

India World

Financialisation of savings: Opportunity for insurance

• Financialisation of savings aided by Direct Benefit Transfer, RERA and GST

42

1. Source: RBI and CSO

2. Source: RBI

3. Total life insurance industry premium including renewal; Source: IRDAI

Household savings1

Distribution of financial savings(excluding currency)2

-0.52 -1.88 -2.03 -2.90 -3.77 -3.85 -4.69-7.41

2.86 7.72 9.90 9.33 12.57 14.96 14.3818.702.98

5.388.56

14.2315.59 13.64 16.53

18.09

54%

69%

60%

45%

52%

60%

55%

64%

44%

52%

48%

31%

36%

45%

37%38%

0%

10%

20%

30%

40%

50%

60%

70%

-30

-10

10

30

50

70

90

FY2002 FY2008 FY2010 FY2012 FY2015 FY2016 FY2017 FY2018

Physical savings

Gross financial savings

Household borrowings

Gross Financial savings as a % of Household Savings

Net Financial savings as a % of Household Savings

16.0%

25.1%

29.0%

23.8%

26.7%

20.5%

20.3%

23.3%

FY2002 FY2008 FY2010 FY2012 FY2015 FY2016 FY2017 FY2018

Provident / Pension Fund / Claims on Govt

Shares / Debentures / MFS

Life Insurance Fund

Deposits

` billion FY2002 FY2008 FY2010 FY2012 FY2014 FY2015 FY2017 FY2018

Life insurance premium3

as

% of GDP2.1% 4.0% 4.1% 3.3% 2.8% 2.6% 2.7% 2.8%

Protection opportunity: Income replacement

43

1. As of FY2018 for India; As of FY2015 for US, Germany and others as of FY2017

2. Source: McKinsey estimates.

3. Protection gap (%): Ratio of protection lacking/protection needed

4. Source: Swiss Re, Economic Research and Consulting 2015

8.56

6.58

5.30

1.090.79 0.77

0.52 0.40

In

dia

Jap

an

S. K

orea

Au

stralia

In

do

nesia

Th

ailan

d

Mala

ysia

Sin

gap

ore

US

D t

n

92 56 85 33 73 78 73

Protection gap 3,4

56273%

270%

252%

144% 142%

113%106%

76%

Sin

gap

ore

US

Jap

an

Ko

rea

Mala

ysia

Th

ailan

d

Ge

rm

an

y

Ind

ia

Sum Assured as a % of GDP1,2

• Sum assured as % of GDP low compared to other countries

• Protection gap for India US $ 8.56 trillion

Protection opportunity: Liability cover

• Retail credit has been growing at a healthy pace

• Credit life is voluntary

44

Source: RBI

Components may not add up to the totals due to rounding off

` billion

4,567 5,386 6,285 7,468

8,601 9,746

11,601 4,409

4,711 5,378

6,454

7,599

9,339

10,606

8,976 10,097

11,663

13,922

16,200

19,085

22,207

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Retail credit

Home Loans Others

Protection opportunity

• Protection premium ~ ` 125 billion for life insurance industry in FY2019

Gross direct premium (` billion) FY2009 FY2019 CAGR

Health 66.23 346.95 18.0%

Motor 138.21 644.55 16.6%

- Motor Own Damage (OD) 87.56 264.73 11.7%

- Motor Third Party (TP) 50.65 379.82 22.3%

45

Source: General Insurance Council and company estimate

• Company strategy and performance

• Opportunity

• Industry overview

Agenda

Evolution of life insurance industry in India

47

1. Retail weighted received premium (RWRP)

2. Individual and Group in-force sum assured

Source: IRDAI, CSO, Life Insurance Council, *Company estimate

Total premium (` bn)

Penetration (as a % to GDP)

New business premium1

(` bn)

FY2018

4,583

FY2002

116

501

21.5%

23.2%

Assets under management (` bn) 33,1302,30424.0%

FY2015

550

2,654

12,899

In-force sum assured2

(` bn) 11,812* 37,505 126,98915.5%

2.1% 4.1% 2.8%

In-force sum assured (as % to

GDP)50.1% 57.9% 75.7%

FY2010

408

3,281

2.6%

23,361

78,091

62.7%

635-5.8%

4.3%

12.6%

15.8%

15.9%

11.8%

12.4%

17.6%

Industry is back to growth trajectory

Channel mix1

Given a well developed banking sector, bancassurance continues to be the

largest channel for private players

48

1. Individual new business premium basis

Source: Life Insurance Council

Industry Private players

69% 66% 63%

23% 25%27%

8% 9% 11%

FY2017 FY2018 9MFY2019

Agency Bancassurance Others

30% 28% 25%

54% 54%54%

16% 18% 21%

FY2017 FY2018 9MFY2019

Product mix1

49

1. New business weighted premium basis;

Source: IRDAI, Life Insurance Council

Industry Private players

• Strong customer value proposition of ULIPs

• Transparent and low charges

• Lower discontinuance charges compared to other savings products

• Choice and flexibility of asset allocation

49% 46% 48%

51% 54% 52%

FY2017 FY2018 9MFY2019

Non Linked Linked

75% 73% 73%

25% 27% 27%

FY2017 FY2018 9MFY2019

Annexures

Average APE by product categories

Average retail APE per policy (`) FY2017 FY2018 FY2019

ULIP 169,701 180,746 159,329

Par 56,325 62,379 60,308

Non Par 39,153 54,187 76,468

Protection 9,815 9,123 12,048

Total 92,735 90,620 83,309

51

Policy term and customer age1

52

1. For FY2019; protection excludes credit life

12

30

Savings Protection

Average policy term (years)

43

36

Savings Protection

Average customer age (years)

Channel wise product mix1

Channel category Product category FY2017 FY2018 FY2019

Bancassurance

ULIP

Par

Non par

Protection

Total

92.1%

5.3%

0.4%

2.2%

100.0%

89.8%

7.3%

0.1%

2.7%

100.0%

93.4%

2.1%

0.6%

3.9%

100.0%

Agency

ULIP

Par

Non par

Protection

Total

79.5%

14.2%

2.0%

4.3%

100.0%

81.8%

13.5%

0.4%

4.3%

100.0%

75.3%

18.1%

0.5%

6.1%

100.0%

Direct

ULIP

Par

Non par

Protection

Total

85.3%

5.0%

3.1%

6.5%

100.0%

88.0%

4.3%

2.4%

5.3%

100.0%

79.3%

5.3%

6.4%

9.1%

100.0%

Corporate agents and brokers

ULIP

Par

Non par

Protection

Total

46.5%

44.1%

0.4%

9.0%

100.0%

36.8%

49.9%

0.5%

12.8%

100.0%

28.2%

49.5%

0.6%

21.8%

100.0%

53

1. Retail Annualized Premium Equivalent (APE) basis

Components may not add up to the totals due to rounding off

Product wise channel mix1

Product category Channel category FY2017 FY2018 FY2019

ULIP

Bancassurance

Agency

Direct

Corporate agents and brokers

Total

62.4%

22.0%

12.2%

3.4%

100.0%

57.4%

25.4%

14.5%

2.7%

100.0%

65.5%

20.5%

12.0%

2.1%

100.0%

Par

Bancassurance

Agency

Direct

Corporate agents and brokers

Total

31.3%

34.3%

6.3%

28.1%

100.0%

35.4%

31.5%

5.3%

27.7%

100.0%

13.8%

45.4%

7.4%

33.3%

100.0%

Non par

Bancassurance

Agency

Direct

Corporate agents and brokers

Total

22.8%

49.0%

25.6%

2.6%

100.0%

15.9%

24.5%

52.8%

6.8%

100.0%

27.4%

8.0%

62.0%

2.6%

100.0%

Protection

Bancassurance

Agency

Direct

Corporate agents and brokers

Total

35.2%

27.9%

21.6%

15.3%

100.0%

35.2%

27.6%

17.9%

19.3%

100.0%

36.9%

22.8%

18.7%

21.7%

100.0%

54

1. Retail Annualized Premium Equivalent (APE) basis

Components may not add up to the totals due to rounding off

Retail persistency excluding single premium1

55

1. 11M-FY2019 persistency

As per IRDA circular dated January 23,2014; excluding group and single premium policies

Persistency across product categories

Persistency across channel categories

86.0%89.4%

84.8%79.4%

64.3% 62.7%

74.1%

49.8%

ULIP Par Non- Par Protection

13th month 49th month

84.8%88.6% 85.6% 88.5%

62.7% 64.9% 66.5% 67.9%

Bancassurance Agency Direct Corporate agents and brokers

13th month 49th month

Embedded value

Analysis of movement in EV1

` billion FY2015 FY2016 FY2017 FY2018 FY2019

Opening EV 117.75 137.212

139.39 161.84 187.88

Unwind 11.70 12.58 12.21 13.72 15.84

Value of New Business (VNB) 2.70 4.12 6.66 12.86 13.28

Operating assumption changes 1.60 1.042

1.00 7.64 4.20

Persistency variance

2.123

2.01 0.99 1.53 2.66

Mortality and morbidity variance 0.79 0.98 0.78 1.97

Expense variance 0.59 0.35 0.27 0.04

Other variance 1.09 0.76 0.00 0.02

EVOP 18.12 22.23 22.95 36.80 38.01

Return on embedded value (ROEV) 15.4% 16.2% 16.5% 22.7% 20.2%

Economic assumption change and

investment variance

11.11 (5.64) 5.82 1.13(1.22)

Net capital injection (9.77) (14.41) (6.32) (11.88) (8.43)

Closing EV 137.21 139.39 161.84 187.88 216.23

57

1. As per Indian Embedded Value (IEV) method

2. Difference of FY2015 closing EV and FY2016 opening EV shown as operating assumption

changes in FY2016;Components may not add up to the totals due to rounding off

3. Includes persistency, mortality and morbidity, expense and other variance

Embedded value

` billion FY2017 FY2018 FY2019

Value of In force (VIF) 94.28 117.64 142.69

Adjusted Net worth 67.56 70.24 73.54

Embedded value1

161.84 187.88 216.23

Return on Embedded Value (ROEV) 16.5% 22.7% 20.2%

EV growth-pre dividend 20.6% 23.4% 19.6%

EV growth-post dividend 16.1% 16.1% 15.1%

VNB as % of opening EV 4.8% 7.9% 7.1%

Operating assumption changes and

variance as % of opening EV2.9% 6.3% 4.7%

58

1. As per Indian Embedded Value (IEV) method

Components may not add up to the totals due to rounding off

EV methodology

• EV results prepared based on the Indian Embedded Value (IEV)

methodology and principles as set out in Actuarial Practice Standard 10

(APS10) issued by the Institute of Actuaries of India (IAI)

• EV consists of Adjusted Net Worth (ANW) and Value of in-force covered

business (VIF)

• ANW is market value of assets attributable to shareholders, consisting of

• Required capital

• Free surplus

• Value of in-force covered business (VIF) is

• Present value of future profits; adjusted for

• Time value of financial options and guarantees;

• Frictional costs of required capital; and

• Cost of residual non-hedgeable risks

59

Components of ANW

• Required capital (RC)

• The level of required capital is set equal to the amount required to be held to

meet supervisory requirements.

• It is net of the funds for future appropriation (FFAs)

• Free surplus (FS)

• Market value of any assets allocated to, but not required to support, the in-force

covered business

60

Components of VIF (1/2)

• Present value of future profits (PVFP)

• Present value of projected distributable profits to shareholders arising from in-

force covered business

• Projection carried out using ‘best estimate’ non-economic assumptions and

market consistent economic assumptions

• Distributable profits are determined by reference to statutory liabilities

• Frictional Cost of required capital (FC)

• FCs represent investment management expenses and taxation costs associated

with holding the Required capital

• Investment costs reflected as an explicit reduction to the gross investment

return

61

Components of VIF (2/2)

• Time value of financial options and guarantees (TVFOG)

• Represents additional cost to shareholders that may arise from the embedded

financial options and guarantees

• Stochastic approach is adopted with methods and assumptions consistent with the

underlying embedded value

• Cost of residual non-hedgeable risk (CRNHR)

• An allowance for risks to shareholder value to the extent not already allowed for in

the TVFOG or the PVFP

• Allowance for asymmetric risks of operational, catastrophe mortality/morbidity and

mass lapsation risk

• Determined using a cost-of-capital approach

• Allowance for diversification benefits among the non-hedgeable risks, other than

the operational risk

• 4% annual charge applied to capital required

62

Components of EV movement (1/2)

• Expected return on existing business (unwind)

• Expected investment income at opening reference rate on VIF and ANW

• Expected excess ‘real world’ investment return over the opening reference rate

on VIF and ANW

• Operating assumption changes

• Impact of the update of non-economic assumptions both on best estimate and

statutory bases to those adopted in the closing EV

• Value of new business

• Additional value to shareholders created through new business during the

period

63

Components of EV movement (2/2)

• Operating experience variance

• Captures impact of any deviation of actual experience from assumed in the

opening EV during the inter-valuation period

• Economic assumption changes and Investment variance

• Impact of the update of the reference rate yield curve, inflation and valuation

economic assumptions from opening EV to closing EV

• Captures the difference between the actual investment return and the expected

‘real world’ assumed return

• Net capital injection

• Reflects any capital injected less any dividends paid out

64

Key assumptions underlying EV (1/2)

• Discount rate and Fund earning rates

• Set equal to reference rates which is proxy for risk free rates

• Reference rates derived on the basis of zero coupon yield curve published by

the Clearing Corporation of India Limited

• Expenses and commission

• Based on the Company’s actual expenses during FY2019 with no anticipation

for productivity gains or cost efficiencies

• Commission rates are based on the actual commission payable to the

distributors

65

Key assumptions underlying EV (2/2)

• Mortality and morbidity

• Based on company’s experience with an allowance for future improvements in

respect of annuities

• Persistency

• Based on company’s experience

• Taxation

• Taxation costs reflect the reduction in costs due to dividend income being tax

exempt

66

Economic assumptions underlying VNB and EV

67

Tenor (years) References Rates

March 31, 2018 March 31, 2019 June 30, 2019

1 6.57% 6.66% 6.28%

5 8.21% 7.83% 7.31%

10 8.31% 8.35% 7.61%

15 8.11% 8.35% 7.63%

20 7.97% 8.22% 7.62%

25 7.91% 8.11% 7.60%

30 7.88% 8.05% 7.60%

Sensitivity analysis (FY2019)

68

Scenario % change in VNB % change in EV

Increase in 100 bps in the reference rates (4.3) (2.0)

Decrease in 100 bps in the reference rates 4.4 2.0

10% increase in the discontinuance rates (8.5) (1.3)

10% decrease in the discontinuance rates 8.9 1.4

10% increase in mortality/morbidity rates (9.4) (1.4)

10% decrease in mortality/morbidity rates 9.4 1.4

10% increase in acquisition expenses (13.0) Nil

10% decrease in acquisition expenses 13.0 Nil

10% increase in maintenance expenses (3.6) (0.9)

10% decrease in maintenance expenses 3.6 0.9

Tax rates increased to 25% (7.5) (4.0)

Glossary

• Annualized Premium Equivalent (APE) – Annualized Premium Equivalent (APE) is the sum of the annualized first year

premiums on regular premium policies, and ten percent of single premiums, from both individual and group

customers

• Assets under management (AUM) - AUM refers to the carrying value of investments managed by the company and

includes loans against policies and net current assets pertaining to investments

• Embedded Value (EV) - Embedded Value (EV) represents the present value of shareholders’ interests in the earnings

distributable from the assets allocated to the business after sufficient allowance for the aggregate risks in the

business

• Embedded Value Operating Profit (EVOP) - Embedded Value Operating Profit (EVOP) is a measure of the increase in

the EV during any given period due to matters that can be influenced by management

• Retail Weighted Received Premium (RWRP) - Premiums actually received by the insurers under individual products

and weighted at the rate of ten percent for single premiums

• Total weighted received premium (TWRP) - Measure of premiums received on both retail and group products and is

the sum of first year and renewal premiums on regular premium policies and ten percent of single premiums

received during any given period

• Persistency Ratio - Persistency ratio is the percentage of policies that have not lapsed and is expressed as 13th

month, 49th month persistency etc. depicting the persistency level at 13th month (2nd year) and 49th month (5th

year) respectively, after issuance of contract

•69

Safe harbor

Except for the historical information contained herein, statements in this release which

contain words or phrases such as 'will', 'would', ‘indicating’, ‘expected to’ etc., and similar

expressions or variations of such expressions may constitute 'forward-looking statements'.

These forward-looking statements involve a number of risks, uncertainties and other factors

that could cause actual results to differ materially from those suggested by the forward-

looking statements. These risks and uncertainties include, but are not limited to our ability to

successfully implement our strategy, our growth and expansion in business, the impact of

any acquisitions, technological implementation and changes, the actual growth in demand for

insurance products and services, investment income, cash flow projections, our exposure to

market risks, policies and actions of regulatory authorities; impact of competition; experience

with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the

impact of changes in capital, solvency or accounting standards, tax and other legislations and

regulations in the jurisdictions as well as other risks detailed in the reports filed by ICICI Bank

Limited, our holding company, with the United States Securities and Exchange Commission.

ICICI Prudential Life Insurance undertakes no obligation to update forward-looking statements

to reflect events or circumstances after the date thereof.

70

Thank you